The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1887-05-06
THE WHEN
UNION PACIFIC INQUIRY.
Sidney Dillon Tells Some of the Things He
Knows, and Grows Angry While Doing So.

NEW YORK, May 5.-Sidney Dillon gave testi-
mony to- day before the Pacific Railway Com
mission in regard to the finances of the Union
Pacific Railroad Company, of which he was
formerly president and is still leading stock
holder. He grew restve under the searching
questions of c. nmissiouer Anderson in regard
to the relations of the Union Pacific TO
its branch lines. In several instances he
pleaded lack of memory in reference to
entries the | companys books. Fl
nally, he asked permission to make
statement which granted. He then made
quite speech defending the policy of throwing
out branch lines feeders and claiming that hs
originated it. He said that that policy had
caused ori gina outlay of So 000 900. but had
soon vindicated itself by adding So, 600, 000a
TO the revenues of the company His successor
had adopted the poor policy of paying of the
$8, 900, 600 debt with the profits of the branch
lines. Mr.. Dillon would have devoted half
those earnings to that purpose and the
other half to extending the branches. The
Union Pacific would have become bankrupt but
for the branch lines The government has sold
lands along the feeders and prohted out of what
it had forbidden the company to do. IL the gov
ernment is dissatisfied with its mortgage on
these lines said Mr.. Dillon, he would buy the
grant. and pay 81, 900, 900 more than the cost of
construction. He declared that the investiga-
ton going to benefit the Union Pacific.
Commissioner Anderson wanted Mr. Dillon 20
explain why it that after the consolidation
of tho Union Pacific, Denver Pacific and Kansas
Pacific in 1873 the 1886 shares of Denver Pa
cifc held by MIR. Dillon, as trustee, or their
equivalent of 50. 9S6, 900. did not appear the
Union Pacific balance sheet.
The witness could not explain, but became
somewhat excited. and said. hotly, mo man
connected with the Union Pacific ever received
a dollar of that stock" He admitted that the
consolidation added SO, 600, 0G0 to the value of
the Denver Pacific securities within twenty
four hours.
Mr. Dillon desired to explain the system of
branch roaeA~, He asked that the reporters re-
frain from taking down" what he said. This
caused SMILE and Mr.. Dillon added desperate
ly, well, put 1t down much you like"
OF the branches he said: Il the inventor of
branches saw the c., B. 6 @ coming in, and
l said, We all like apple tree Wi tout
branches. We cannot bear fruit Y ith-
out branches Other roads were threat
enng in and US, and
through US, and unless We built or controlled
these branches--the very arteries that carried
our life bood-we could not stand; we would
have to go into the hands Of receiver, and 1
don't know but will yet. If there ia any
blame in the branches, l will stand it. l
respons BILE. But am proud of 1t. l say, gem
tlemen, that the Union Pacific was my pet and
| have always conducted its affairs
if l owned it. The governments ought to
be glad that built these roads instead of
letting the directors build them and get the bon
eft themselves. | say that the benefit has been
to the Union Pacific, and that the officers of the
road never made dollar out of it. They might
have been worth S100.000.000. l held 10000
shares from the time 1t was worth 141 until it
had gone down to 294. did not sell a share. /
might have sold and ruined the road forever. l
wish to God the government would let up US,
and let go ahead and branch out wherever
want, and issue bonds on every mile of
the road, and be free. Give time and we will
pay every debt. including that 10 the govern
ment. We are safe any road. | want to
say that if the government will give a release
1 will take the branch roads at cost within six
months" He said the government should give
the company all the time it needed TO pay its
debts in Witness took the branch roads up to
save them from enemies He owned more in
Union Pacific than any other man, and was not
afraid of the government anybody else.